homeappraisal Archives - Sage and Cedar https://sageandcedarhome.com/tag/homeappraisal/ Guiding you to financial freedom through real estate investing & ownership Thu, 19 Jun 2025 14:26:13 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 https://i0.wp.com/sageandcedarhome.com/wp-content/uploads/2022/05/favicon-1a.png?fit=32%2C32&ssl=1 homeappraisal Archives - Sage and Cedar https://sageandcedarhome.com/tag/homeappraisal/ 32 32 206205492 What to do if your Home Appraises for Less than Contract Price? https://sageandcedarhome.com/what-to-do-if-the-home-you-have-under-contract-appraises-for-less-than-contract-price/ Tue, 08 Jun 2021 02:39:00 +0000 http://box5524.temp.domains/~sageanh8/what-to-do-if-the-home-you-have-under-contract-appraises-for-less-than-contract-price/ 4 things you can do if the home you're trying to purchase appraises for less than your contract price

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What to do if your Home Appraises for Less than Contract Price?

There are so many moving parts in a real estate transaction. Inspection, appraisal, financing, title, the list goes on! When one or more of these things don’t go as planned, you risk losing the home all together. So what do you do if your home doesn’t appraise for contract price?

Because home buyers are agreeing to pay more than the list price, what happens if the appraisal does not support the contract price? Let’s dig in…⁠⁠

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01. You can ask that the seller negotiate down to the appraised value: The buyer can always request that the seller negotiate down to the appraised value. If they do not have the funds to cover the difference, this may be the only option!
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02. You can agree to pay the difference between the appraised value and contract price at closing: This would be an additional out of pocket cost. Ex- Under contract at $350,000, home appraised at $340,000, $10,000 add’l out of pocket at closing.
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The buyer can always request that the seller negotiate down to the appraised value.

03. You can meet the seller halfway and ask them to come down but also pay the difference out of pocket at closing⁠⁠: This is a meet in the middle scenario where the seller comes down on price and the buyer still agrees to pay that lesser difference.
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04. You can terminate the contract and walk away from the deal: Depending on the language agreed to in the contract would determine who would keep the earnest money.⁠⁠

Deciding what to do if your home appraises for less than contract price should always involve a conversation with your agent and lender. They may have a creative way to move forward and keep everyone on track! Looking to get started with an S&C agent? Contact us here!

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